Business Finance Formulas Flashcards
(30 cards)
Net cash flow
Total income - total expenditure
Closing balance
Opening balance + net cash flow
Total revenue
Selling price × quantity sold
Total costs
Total fixed costs + total variable costs
Profit
Total revenue - total costs
Total contribution
Sales revenue - total variable costs
Contribution per unit
Selling price - variable cost (per unit)
Profit (using contribution)
Contribution per unit × margin of safety
Break-even point
Total fixed costs/contribution per unit
Margin of safety (units)
Actual sales - break-even output
Margin of safety (value)
Margin of safety(units) × selling price per unit
Sales revenue
Selling price per unit × quantity sold
Costs of goods sold
Opening inventory + purchases - closing inventory
Gross profit
Sales revenue - costs of goods sold
Profit/loss for the year
Gross profit - expenses + other income
Net current assets
Current assets - current liabilities
net assets
Non-current assets + net current assets - non-current liabilities
Capital employed
Opening capital = profit for the year - drawings
Net book value
Costs-depreciation
straight line depreciation
Historic cost - residual value/expected life
Reducing balance depreciation
Net book value × % set depreciation
Gross profit margin
Gross profit/sales revenue × 100
Mark-up
Gross profit/cost of goods sold × 100
Profit margin
Profit/revenue × 100
